Candour Techtex Ltd has received a tax penalty order totaling ₹10.2 million, adding a fresh regulatory challenge for the technical textiles manufacturer. The penalty, imposed by the Income Tax Authority, comes at a time when the company is already navigating market volatility and operational headwinds.
Key Highlights:
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Significant Tax Penalty: The ₹10.2 million penalty underscores heightened scrutiny on compliance and reporting standards for listed companies. While the specific grounds for the penalty have not been detailed, such actions typically relate to discrepancies in tax filings or procedural lapses.
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Recent Compliance Issues: This order follows a pattern of regulatory attention. In the recent past, Candour Techtex was fined by the Metropolitan Stock Exchange for a separate compliance lapse regarding timely disclosure of board meetings, though the company promptly paid the smaller penalty and addressed the issue.
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Market Reaction: The news of the tax penalty arrives as Candour Techtex shares have faced intense selling pressure, with the stock declining nearly 5% in recent sessions amid broader market weakness and company-specific concerns.
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Operational Resilience: Despite these challenges, Candour Techtex continues to invest in technology upgrades and operational efficiencies, recently commissioning a PLC-controlled Relax Dryer to cut costs and strengthen its competitive position.
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Next Steps: The company is expected to review the tax order and may consider legal or administrative remedies, while maintaining its focus on compliance and transparency.
This latest development puts Candour Techtex’s governance and risk management practices in the spotlight as it works to reassure investors and regulators.
Source: Musrad, MarketsMojo, Company Annual Reports